Chapter 20 Bankruptcy: What You Need To Know

In order to understand chapter 20 bankruptcy, you first have to understand both chapter 7 and chapter 13 bankruptcy; this is due to the fact that filing both is the process of filing chapter 20. This can be really confusing, so we are going to break down the understanding of chapter 7 and chapter 13, as well as the pros & cons of filing a chapter 20.

By the end of this article it should be abundantly clear to the reader. Further, information on sites like, can also provide alternatives to bankruptcy. So, at the very least, you will be able to know if filing a chapter 20 bankruptcy is right for you.

Chapter 7 Bankruptcy

This is a 2 part process. The first step is to meet with the creditors. They will decide, essentially whether or not they are going to discharge your debts. They have 60 days in which to decide. If they do decide to discharge your debt, you will probably have to take a class on how to proceed from there – this is the second stage of the process. Now, there is no guarantee that you can get your debts discharged. Not all debts are available to be discharged. If they decide not to discharge your debt, you will get a reason why they cannot be discharged. Keep in mind that even though your debts are cleared, and your assets are likely to be exempt.

Chapter 13 Bankruptcy

There are a lot of cases where you can file chapter 13 bankruptcy immediately after getting chapter 7 done. The way that it differs from chapter 7 is that, while you do not lose your home or car in the process, you don’t get cleared of these debts, either. You will have some of your debts cleared, but (for the most part) you are going to be set up on a repayment plan that will allow you to easily repay your debts without taking a significant loss on your assets.

Now here’s the hard pill to swallow. As part of chapter 13, you have no rights to take on any kind of new debt, without the courts approval, until the old debts are completely paid off. If you happen to receive any unexpected money, it is going to be applied towards your payment plan. So just be ready to live on an extremely tight budget with no wiggle room. Also, can help you manage the effects of a chapter 20 bankruptcy, or provide you with a different way to maintain your credit score (with better debt management).


So here are the real benefits to filing for chapter 20 bankruptcy. According to the chapter 7 bankruptcy you are going to get some of your debts removed. You will have a reasonable amount of financial breathing room to accommodate debts that cannot be removed. You have the ability to refocus and regroup, so that your new plan includes what is really important. Payment plans, according to chapter 13 bankruptcy, usually last about 5 years – which isn’t a terribly long amount of time.

The Downside

Chapter 20 bankruptcy is going to take away all your assets. It is not going to give you much room to grow. You are pretty restricted to what you agree to. You are not going to have any extra money. You will not be able to do any unnecessary improvements to your house. You are not going to do much of anything, without having to file a petition from the courts – the success rate for filing this can be low.

Also, if you miss a single payment, you can lose your whole payment protection plan. If you get a settlement of any kind, you will find that it is redirected to your payment plan – this may not seem fair, but it is money that you owe. With a chapter 20, signing the agreement means you agreed to pay it by any means. The upside of this is that even though you don’t have more wiggle room in your budget, it is going to cut down the amount of time that you are on the payment plan.

It is essential that you get a lawyer to help you to understand any contract that you may have to sign and commit to. If you do not fully understand what is expected of you in a process like this, can help simplify this difficult financial readjustment. This financial commitment is an arduous process. In the long run it could save you from financial ruin, if you follow the rules that are outlined in the paperwork. Chapter 20 bankruptcy is definitely a useful tool to get your life on track. It is meant to help those who need the extra help.

The Effects of Bankruptcy on Your Credit

Have you heard the latest buzz among financially troubled people? More and more people have been more open to file for bankruptcy. This serves as a way to erase all of their outstanding debts and give them a fresh start. However, filing for bankruptcy does have its negative effects. Even though it gives people the chance to erase their debts, it would still have a great impact on your credit scores. And even though there are sites like that can help minimize its negative impact, the effects of bankruptcy can still take it toll.

Sometimes doing a bankruptcy can be a sign of relief for a person who is totally broke. This would help bring an end to intimidating letters you receive from different lending companies. Agents would no longer have to flood your answering machine, making phone calls almost every day. Actually, the effect on your credit score will also have to rely on the type of bankruptcy that you have filed.

If you wish to know how bankruptcy could affect your credit score, please read further – this informative article will provide explanations that will allow you to understand the relationship between bankruptcy and credit scores.

Deductions On Credit Scores

Once you file for bankruptcy, your credit scores would automatically receive a 220 point deduction. This would greatly affect your records, especially if you did not have satisfactory credit scores, in the first place. This will be a great problem if you do not know how to rebuild credit scores and improve them within a specific time frame; a company that can show you how to do just that, is

However, if you are confident that you could eventually recover from your financial burdens (and repair your bad credit), you should not worry much about declaring bankruptcy. Now that you had the advantage of erasing all your debts, you should grab this big opportunity, and adopt new financial habits that could change your life.

Bankruptcy Haunts You For Years

Aside from lowered credit scores, your claim for bankruptcy would also haunt your finances, for a relatively long period. It can stay on your credit report(s) for a good seven years or more, thus making it hard for you to carry out major transactions (like buying a car or a home). Getting loans would also be twice as hard than before you filed for bankruptcy. Lenders and sellers might become hesitant to offer you their products or services, once they see your record of bankruptcy.

Although you can delete a debt collector, like Stellar Collections, this deleted item would stay in your credit records for about seven years. These would serve as evidence of your financial hardships, hence making you look like a risky investment, for most lenders and home sellers.

Here is one simple tip about buying a real estate property after an episode of declared bankruptcy. Look for different lending institutions or banks that offer lenient services. Some lenders still accept borrowers with records of bankruptcy, as long as they were able to rebuild their credit in two or more years. Thus, you do not need to wait for seven years before applying for a mortgage. All you need to do is to wait for two more years after your stated bankruptcy, and rebuild your finances until two years have gone by.

What Makes Bankruptcy So Difficult To Handle?

Aside from the complications that bankruptcy brings during applications for mortgages and loans, it also gives borrowers a hard time in signing up for other credit lines or acquiring insurance premiums. Insurance premiums (for people who have experienced bankruptcy) are more expensive than those who have maintained stable financial track record. Meanwhile, credit lines would also reject your applications once they see a bankruptcy of any kind. You would be classified as a “high-risk” client, hence making them reject your applications.

Re-establishing your credit score from bankruptcy will be difficult, but it is not impossible. You can find secured credit cards, which usually max out at $500. By using this credit card for small purchases that you can pay off immediately, you are building good credit. You may also find yourself eligible for gas cards, which works the same way. Also, mortgages may help to rebuild your credit, after bankruptcy. Oftentimes, two to three years after declaring bankruptcy, you may be eligible for an FHA loan that has moderate interest rates. Paying your mortgage on time will give your credit a big boost.

Always remember these things before filing for bankruptcy. Keep in mind that bankruptcy is not an easy way out of your financial burdens. It also causes some negative consequences on your credit records, as well as financial transactions with other people.

What’s Life Like After Bankruptcy?

Filing Chapter 7 or Chapter 13 bankruptcy paperwork usually means that you should start bracing yourself for life after bankruptcy. You need to understand that the recovery process is difficult, and is bound to take a very long time. Liquidating some of your assets is just one of the many issues that must be dealt with, first. So you need to prioritize and decide on which assets are going to be liquidated and which ones are going to remain.

The hard truth for you to swallow is that you will probably not be able to get a loan for the next couple of years, as a bankruptcy on one’s credit report makes for a poor loan candidate. You have many needs and you cannot seem to find a way through which you will be able to obtain the cash necessary to address these needs.

Another thing you need to prioritize is regaining a better credit score; go to to find out how getting a credit dispute for inaccurate items on your credit report can help you salvage whatever is left of your credit score. By now, all the types of lenders – be it a lending institution, shylock or even payday loans sites – will view you as a bad risk since you have taken a step to legally write off some of your past debts. This means that you will not be able to obtain a loan or a credit card for a certain period of time. That is not all, supposing you manage to get a loan or a credit card, the associated interest rates and fees attached to such facilities will be massive.

As the consequences of Chapter 7 or Chapter 13, bankruptcy continues to hit you hard, and you try to figure out a way through which you will be able to take back control of your finances. You tell yourself that you will do what it takes to adopt a debt-free lifestyle, even if it means cutting the spending on some of your basic needs.

As you seek to improve your credit score, access your equifax credit report, and swear to yourself that you will only seek help from the few remaining trusted friends (only if you need the funds urgently). You also seek to settle your bills (on time) to avoid unnecessary embarrassment. You also save up for the end result which is living a life free of debt – go to for more tips.

In order for you to realize some of the goals you aim to fulfill in this phase of your life, you decide to get a job. Moreover, you find a good and affordable place to live. You strive to maintain the job, and also the residential area – since you want to show creditors how reliable you are. A history of changing jobs and residential places will only show the creditors you are scheming and therefore unreliable.

However, as you take the necessary steps needed in rebuilding your (already damaged) credit, you encounter employers and landlords who require you to produce documents revealing your credit score. You may, however, request help from your few trusted friends, to help you land a job, however unstable it may be; since right now your priority is to meet your most urgent pressing needs. You may also choose to live in your friend’s servant quarters, if you fail to find a place to rent.

Another important step to take that will help you improve your credit score will be to maintain a bank balance. It is very fortunate that a majority of banks have come up with programs meant to offer a second chance to people who have already filed for bankruptcy. You may, therefore, approach your preferred bank branch to proceed with letting them take custody of your savings. It will be important to maintain a positive balance in the account at all times, as this will show your employers and creditors that you’re liquid.

You will also need to compose realistic budgets from time to time to help you become extra vigilant with your finances. A well-formulated budget will act as a spending plan to help you manage your cash flow. It will also help prevent you from getting into unnecessary debt; access your experian credit report to help you manage your debt, if it’s too overwhelming. Learn how, here  Getting a secured credit card is also another good way of ensuring you improve your credit score; be sure to check whether it is accessible to people who have filed for bankruptcy from your local lending institutions.

These are just some of the few sure ways that will help you as you progress through life – after filing for bankruptcy. Making wise use of your income and credit are indeed the surest ways of rebuilding your credit rating, and also assisting you to get back to financial stability, again. The bottom line is that if you will manage to prove to lending institutions (and employers) that your life is in order, then you will be able to weather the storm associated with life after bankruptcy.

Solving Financial Problems With Budgeting

Many people have been in this situation before: You’re doing well on the bills or are ahead in your monthly payment plan, and you get your paycheck & decide to treat yourself. You go out a few times, buy a few things (all small, affordable purchases). And after a little bit, you suddenly have less money in your checking account, than you expect. The extra spending money you thought you had, now suddenly seemed to have vanished into thin air! It seems hard to believe, because you only made small purchases to avoid a problem like this, but you look at how all those small things add up, and suddenly you realize that, although they didn’t seem like a big deal (at the time), when added altogether, they completely bust your wallet!

We all are familiar with this situation, and all of us can relate. Budgeting is important because even individuals making plenty of income (who earn bonuses), can fall into this situation – where they are in monetary trouble. It only takes a tight budget going into the red (just one time) to wreck everything, especially when fees get piled on; and debt collectors, like national credit systems, wait in the wings to tack on more fees, making things go further south. Fortunately, for fees that were unjustly incurred, one can use their consumer rights to fix this problem.

Far too often people will think they’re in good financial shape and use that as an excuse to go & make a lot of small purchases (assuming they can afford them), only to have trouble paying the bills, later on. All of this is easily preventable, and one way to avoid this pitfall, is to use personal budgeting software. These applications help keep track of both income and expenses, which allows the person using the software to visualize better, and understand where all of their money is going. There are no complicated mathematical formulas to program into a spreadsheet, either. Personal budgeting software is much more useful, intuitive and helpful to any individual that uses it.

You can learn about budget programs at . Arguably the best budgeting programs use a system called “zero-sum” budgeting, which means that every dollar is assigned a job – whether it be saving money for retirement or paying off collection agencies, like united recovery systems. It can also refer you to sites that help you further understand financial management. Overall, this software helps you, not only keep track of expenses, but also to specifically allocate money for saving or spending.

While there are many people who are skeptical of the power of personal budgeting software, this skepticism often comes from people who haven’t used it or assume they’re financially fine – even when  they’re not. The vast majority of individuals who use this software have been helped out greatly by it. To prove this point, a recent survey of users of a popular budgeting application were found that, after 31 days of using the software, those who actually followed the advice of the application were (on average) able to pay down $500 more on their debt, than those who did not use the software. Think of the financial progress you could make if you reduced your credit card bills or student debts by an additional $500 (or more), every single month. If you’re one of the lucky few for whom debt is not an issue, then think of how quickly another $500 a month can be used towards early retirement or a fantastic and memorable vacation!

Creating a budget is not an activity that is just reserved for married couples, but it is important for all individuals and many young people, as well. Starting out with good budgeting software (while you’re young) will give you a big advantage in managing your finances, throughout life. The earlier one learns to budget and manage their income and avoid debt collectors, like hunter warfield, the more likely they are to be financially successful, later in life. Overall, there’s no question that a personal budgeting software program will make the process of financial responsibility a whole lot easier.

With an excellent personal budgeting program, you will be working to figure out ways to put your money to work, and you will see positive results over and over again! This also uses the concept of setting a budget for the current month’s expenses, based on the previous month’s income. No matter what your budgeting and financial goals are (whether it be to reduce or eliminate debt, save for a new car or set up an early retirement fund), you need a realistic & workable budget that you can live with – otherwise, you will lose money…and the options that came along with it.

How To Get a Cell Phone After a Bankruptcy?

Getting a cellphone after suffering from bankruptcy has never been easy. But there are several things to consider in order to make it possible. The “first things first” method is very effective way of understanding the important things that need to be considered after bankruptcy. Think first of getting a prepaid plan. This does not have any credit restrictions and works on a very simple platform. If you are aiming for a more traditional type of cellphone after suffering from bankruptcy, this will be more expensive.

The companies will still treat you as customers, but will demand that you provide a larger deposit for the account security. In the event that you fail to make the payments, the deposit will be used to pay off your account. If you regularly procure your payments in a timely manner, you will get the chance of getting back the deposit in about a year; after a bankruptcy, staying current on payments can give you benefits, in terms of displaying good credit habits – for example, making scheduled payments (or even making arrear payments) to a debt collector will help you rebuild your credit. If you maintain your finances, after bankruptcy, it will not only give you improved credit, but will eliminate many of your credit problems, as well. If problems persist, and you are still being harassed by creditors, you have the option to end it with the cease & desist order – find out more at

Bankruptcy can lead to a good start with your new finances and making you eligible to build up a more positive credit history. You can still get a cell phone after bankruptcy, then you can make a plan to rebuild your credit for over time. The majority of the cell phone providers will look into the credit report of the applicant, to determine the ability of the applicant to secure a cell phone plan. There are only a limited number of options for people that endured bankruptcy. The use of prepaid minutes requires a small monthly charge to continue the service. This method will allow you to buy the minutes automatically, which can reduce the risk of the cellphone provider.

There may be few inconveniences in having a cell phone plan after bankruptcy. The prepaid phone plan might be inconvenient, but can help keep your finances from going out of whack. In addition to this, making a high deposit upfront, will serve as an incentive in rationing your minutes, to make the money stretch as far as possible; this could also lead to a more beneficial cell phone plan in the future.

Nowadays, the cell phones are becoming a necessity than as a luxury. And it is very difficult to find cell phone providers after the bankruptcy. The people who has imperfect credit can still have the cellphones they like, if they have the proper knowledge & advice. The major cell phone providers will require a credit check prior to giving service and accompanying handsets. The reason for this is that the technology in cell phones are getting so advanced that the potential consumers will rack up on bills – ranging to thousands of dollars! Determining the potential of the customer in managing his money, is a big impact in the decision of cell phone companies and providers; this is the proof as to why it is difficult to have cell phone plans after bankruptcy. For debts that may have not been discharged during the bankruptcy, you may want to look into using a goodwill letter, to have your remaining debt forgiven – look into for more details. Some debt collectors have their own payment systems, for those who pay late; for example, ic payment systems is used for the debt collector, ic systems.

Many people believe that it is impossible to get a cell phone after bankruptcy since none of the cell phone providers are willing to stretch its service. Even if someone has turned down the contract service of the large cell phone service provider, there are still good options available for them. In the event that searching for cell phones (after bankruptcy) is very expensive for a fragile budget, there are many programs offered to low-income families to receive low-cost cell phones; this is a good opportunity for families with low income, that are dealing with the bankruptcy, and are in need of an emergency cell phone. Again, debts that remain outstanding, after a bankruptcy, may have already expired. Go to to find out if your debt expired.

Thinking of the important things that will contribute to one’s application for a cell phone is a good beginning – after bankruptcy. Some of the cell phone contact service providers will let their service extend to someone who suffers from bankruptycy. Everybody knows that these cell phone providers usually require a deposit on the number of lines and types of service that they offer. If the time of bankruptcy has passed, this will be reflected on the credit score. The numerical value of the credit score is just phone company way of determining the deposit amount of the customer. This just becomes the basis for the customer’s ability to pay the debt. Considering several factor for increasing your credit score can create a bigger chance for the approval of the cell phone application. Paying other expenses and bills will not make a variance in the credit score; but doing so will be a good indicator that the customers have changed their habits (for the better) in paying debt.